Opinions of the State Council on Further Supporting the Healthy Development of Small and Micro Sized Enterprises
Opinions of the State Council on Further Supporting the Healthy Development of Small and Micro Sized Enterprises
Opinions of the State Council on Further Supporting the Healthy Development of Small and Micro Sized Enterprises
Guo Fa [2012] No. 14
April 19, 2012
The people's governments of each province, autonomous region and municipality directly under the central government, the ministries and commissions of the State Council, and administrations directly subordinated to the State Council:
The small and micro sized enterprises play an irreplaceable role in increasing the employment rate, and promoting the economic growth, technological innovation and social harmony, and have important strategic meaning for the national economy and social development. The Party Central Committee and the State Council pay highly attention to the development of small and micro sized enterprises and have released a series of finance and tax related supporting policies and have make great progress. However, with the impact of domestically and internationally complex and changeable economic situations, currently, the small and micro sized enterprises still face great pressure concerning operation and rise of costs, and difficulty in financing and heavy tax burden, therefore, highly attention must be paid to such problems. For the purpose of further supporting the healthy development of small and micro sized enterprises, following opinions are hereby formulated.
I. Understanding comprehensively the importance of further supporting the healthy development of small and micro sized enterprises
1. Strengthening the confidence in carrying out the work relating to small and micro sized enterprises. The governments and competent authorities of each level shall pay highly attention to the new situations and new problems facing the small and micro sized enterprises, increase confidence and increase supporting strength and attach more importance to taking the support on the healthy development of small and micro sized enterprises as important measures for consolidating and expanding the achievements on settling the impact of international financial crisis and keeping the stable and rapid development of economy. All authorities shall, through scientific analysis, master correctly, conduct research actively, and take pertinent policies measures to help small and micro sized enterprises to increase confidence, operate stably, and increase the profitability and potential of development, and to empower the enterprises the capability of sustainable development.
II. Further strengthening the financial and tax support for small and micro sized enterprises
2. Implementing effectively all tax preference policies on supporting the development of small and micro sized enterprises. The threshold of value added tax and business income tax will be increased and the business income tax policies (50% reduction of business income tax) for small and micro sized enterprises will be extended to the end of 2015 and also the applicable scope of such policies will be expanded; The technical service platforms of the qualified national public service demonstration platforms for medium and small sized enterprises will be included into the scope of tax preference policies concerning import tax on scientific and technological development supplies; From November 1, 2011 to October 31, 2014, the loan contracts between financial institutions and small and micro sized enterprises will be exempted from stamp tax and the policy on deduction of loss reserve funds of agricultural loans and small and micro sized enterprises loans of financial institutions will be extended to the end of 2013 and the policy of collection of business income tax at the rate of 3% of financial insurance income of qualified rural financial institutions will be extended to the end of 2015. The practice of transferring the business income tax to value added tax shall be furthered and the double collection of business income tax on service industry shall be settled gradually. The structural tax reduction policy by integrating the reform of taxation system shall be optimized and further study on the taxation system further supporting the development of small and micro sized enterprises shall be conducted.
3. Optimizing financial support policies. For the purpose of exerting fully the supporting and guidance role of current specific funds for medium and small sized enterprises, in 2012, the scale of such funds will be expanded from RMB12.87 billion to Yuan RMB14.17 and will increase gradually thereafter. Such specific funds shall reflect the orientation of policies, strengthen the pertinence, continuity and operability and highlights the focal purpose of the utilization of such funds and give preference to small and micro sized enterprises and middle and west region of China.
4. Establishing national-level medium and small sized enterprise development funds. The capital of such funds will include funds arranged by central budget, income of funds and donation, etc. The central budget will arrange for about RMB15 billion, which will be paid in 5 years where RMB3 billion will be available in 2012. The funds will be used to guide the local and venture investment institutions and other social funds to support the small and micro sized enterprises in the growth period. Donation of capitals to such funds will be encouraged. For any public institutions, social group and individuals donating capitals to such funds, such donated capitals will be allowed to be deducted before the calculation of taxable income, for the portion less than 12% of the total of the annual profits of enterprises or for the portion less than 30% of the declared taxable income of individuals.
5. Supporting the development of small and micro sized enterprises through governmental purchase. The authorities responsible for preparing the budgets shall allocate at least 18% of the total budgets of the annual purchase projects for small and micro sized enterprises. During the review of governmental purchases, about 6%-10% deduction of the price of the products of small and micro sized enterprises may be available as the case may be. Large and medium sized enterprises are encouraged to form consortium with small and micro sized enterprises to participate in the purchase projects of governments and if the share of small and micro sized enterprises reaches more than 30% of the consortium, then 2%-3% deduction of the price of the consortium may be available. The pilot work of credit guarantee for governmental purchase projects will be advanced and small and micro sized enterprises are encouraged to participate in the provision of bidding guarantee, performance guarantee and financing guarantee and other service for governmental purchase projects.
......
Guo Fa [2012] No. 14
April 19, 2012
The people's governments of each province, autonomous region and municipality directly under the central government, the ministries and commissions of the State Council, and administrations directly subordinated to the State Council:
The small and micro sized enterprises play an irreplaceable role in increasing the employment rate, and promoting the economic growth, technological innovation and social harmony, and have important strategic meaning for the national economy and social development. The Party Central Committee and the State Council pay highly attention to the development of small and micro sized enterprises and have released a series of finance and tax related supporting policies and have make great progress. However, with the impact of domestically and internationally complex and changeable economic situations, currently, the small and micro sized enterprises still face great pressure concerning operation and rise of costs, and difficulty in financing and heavy tax burden, therefore, highly attention must be paid to such problems. For the purpose of further supporting the healthy development of small and micro sized enterprises, following opinions are hereby formulated.
I. Understanding comprehensively the importance of further supporting the healthy development of small and micro sized enterprises
1. Strengthening the confidence in carrying out the work relating to small and micro sized enterprises. The governments and competent authorities of each level shall pay highly attention to the new situations and new problems facing the small and micro sized enterprises, increase confidence and increase supporting strength and attach more importance to taking the support on the healthy development of small and micro sized enterprises as important measures for consolidating and expanding the achievements on settling the impact of international financial crisis and keeping the stable and rapid development of economy. All authorities shall, through scientific analysis, master correctly, conduct research actively, and take pertinent policies measures to help small and micro sized enterprises to increase confidence, operate stably, and increase the profitability and potential of development, and to empower the enterprises the capability of sustainable development.
II. Further strengthening the financial and tax support for small and micro sized enterprises
2. Implementing effectively all tax preference policies on supporting the development of small and micro sized enterprises. The threshold of value added tax and business income tax will be increased and the business income tax policies (50% reduction of business income tax) for small and micro sized enterprises will be extended to the end of 2015 and also the applicable scope of such policies will be expanded; The technical service platforms of the qualified national public service demonstration platforms for medium and small sized enterprises will be included into the scope of tax preference policies concerning import tax on scientific and technological development supplies; From November 1, 2011 to October 31, 2014, the loan contracts between financial institutions and small and micro sized enterprises will be exempted from stamp tax and the policy on deduction of loss reserve funds of agricultural loans and small and micro sized enterprises loans of financial institutions will be extended to the end of 2013 and the policy of collection of business income tax at the rate of 3% of financial insurance income of qualified rural financial institutions will be extended to the end of 2015. The practice of transferring the business income tax to value added tax shall be furthered and the double collection of business income tax on service industry shall be settled gradually. The structural tax reduction policy by integrating the reform of taxation system shall be optimized and further study on the taxation system further supporting the development of small and micro sized enterprises shall be conducted.
3. Optimizing financial support policies. For the purpose of exerting fully the supporting and guidance role of current specific funds for medium and small sized enterprises, in 2012, the scale of such funds will be expanded from RMB12.87 billion to Yuan RMB14.17 and will increase gradually thereafter. Such specific funds shall reflect the orientation of policies, strengthen the pertinence, continuity and operability and highlights the focal purpose of the utilization of such funds and give preference to small and micro sized enterprises and middle and west region of China.
4. Establishing national-level medium and small sized enterprise development funds. The capital of such funds will include funds arranged by central budget, income of funds and donation, etc. The central budget will arrange for about RMB15 billion, which will be paid in 5 years where RMB3 billion will be available in 2012. The funds will be used to guide the local and venture investment institutions and other social funds to support the small and micro sized enterprises in the growth period. Donation of capitals to such funds will be encouraged. For any public institutions, social group and individuals donating capitals to such funds, such donated capitals will be allowed to be deducted before the calculation of taxable income, for the portion less than 12% of the total of the annual profits of enterprises or for the portion less than 30% of the declared taxable income of individuals.
5. Supporting the development of small and micro sized enterprises through governmental purchase. The authorities responsible for preparing the budgets shall allocate at least 18% of the total budgets of the annual purchase projects for small and micro sized enterprises. During the review of governmental purchases, about 6%-10% deduction of the price of the products of small and micro sized enterprises may be available as the case may be. Large and medium sized enterprises are encouraged to form consortium with small and micro sized enterprises to participate in the purchase projects of governments and if the share of small and micro sized enterprises reaches more than 30% of the consortium, then 2%-3% deduction of the price of the consortium may be available. The pilot work of credit guarantee for governmental purchase projects will be advanced and small and micro sized enterprises are encouraged to participate in the provision of bidding guarantee, performance guarantee and financing guarantee and other service for governmental purchase projects.
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